Tips for buying distressed properties
Before wasting valuable time making offers and waiting for an answer, make sure you have the loan approved on your end
Let a Contractor See It
If you are not doing the repairs yourself, ask a contractor to go with you. You need to know how much it will cost to renovate before you can make an offer.
Cushion Your Budget
You should have professionals take a detailed look at the home, but understand that the actual final cost of renovation will likely be higher than estimates. Add 10 to 20% to your renovation budget.
Know Your Price
Offer a realistic price that fits your budget. Those looking for the deal of the century are not going to get the property with such fierce competition.
Understand the Investing World
The real estate investing world will not always be fair. Sometimes homes are listed at lowball prices to attract sales leads while others will have a “secret” price known only to the insiders. Do not get frustrated when you encounter injustice. Simply move on to the next home.
Headaches, frustration and the feeling that nobody is working on your deal are all normal. On one hand, do not expect everything to happen overnight. On the other, don’t be surprised if sudden decisions are called for.
An interesting read…